Mid-Day Gold & Silver Market Report – 2/27/2014

Ted Prince

2/27/2014 12:06:00 PM

GOLD REBOUNDS ON GLOBAL TURMOIL, POOR DOMESTIC ECONOMIC DATA

Gold has rebounded from its first daily loss in several sessions as conflict in the Ukraine intensifies and domestic economic reports disappoint.  The yellow metal experienced a lift from a weaker-than-expected jobless claims report and a dip in monthly durable goods orders as tensions escalate overseas, pushing investors to the traditional safe-haven of Precious Metals.  “If this situation escalates it would put even more risk aversion into the world market place, which would likely be bullish for [G]old,” said one metals expert.  As Federal Reserve Chairman Janet Yellen addresses the U.S. Senate Banking Committee today, analysts and traders will see if the poor economic reports will be enough to sway the Fed from its current pace of stimulus tapering. 

U.S. stocks are wavering on Thursday as Federal Reserve Chair Yellen indicates a potential shift in monetary easing policy.  The S&P 500 was trading near an all-time high before Yellen began her speech.  “Yellen said that they would consider pulling back on their tapering schedule if the economy slowed in a meaningful manner,” Matt Maley, equity strategist with Miller Tabak & Co., said.  “She seems to be more willing to step back on the accelerator than she was when she last spoke to Congress.”  Many analysts expect a boost in Gold prices should the Fed deviate from their current level of stimulus reduction. 

At 1:05 p.m. (ET), the APMEX Precious Metals spot prices were:

• Gold, $1,336.40, Up $6.40.
• Silver, $21.42, Up $0.12.
• Platinum, $1,450.40, Up $24.40.
• Palladium, $744.10, Up $10.80.

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